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CURC Applauds Reintroduction of ACCESS 45Q Act

February 16, 2021

On February 15, Congressmen David McKinley (R-WV) and Marc Veasey (D-TX) reintroduced the Accelerating Carbon Capture and Extending Secure Storage through 45Q (ACCESS 45Q) Act (H.R. 1062).

The ACCESS 45Q Act would allow carbon capture project developers to elect to receive a direct payment equal to the full value of the Section 45Q tax credit, which will better enable project financing for carbon capture, utilization, and storage (CCUS) by allowing project developers to avoid the tax equity markets that make project finance challenging.

The legislation would also extend the "commence construction" window for the Section 45Q credit by 10 years, providing much needed certainty to project developers contemplating the availability of the credit., and revise language under the 2017 Tax Cuts and Jobs Act that would prevent CCUS project developers from accessing some or all of the tax credit.

CURC Executive Director Shannon Angielski issued the following statement in support of the legislation:

“Investment in the energy infrastructure of the future is critical to boost economic recovery after the impact of the COVID-19 pandemic. Carbon capture, utilization, and storage (CCUS) projects have a unique and irreplaceable role in that future, helping to decarbonize the electric power and industrial sectors consistent with global and domestic emissions reduction objectives while maintaining and creating good-paying jobs.

The ACCESS 45Q Act would help to enable CCUS project deployment by extending the commence construction deadline under the Section 45Q tax credit and implementing a direct payment mechanism for the credit that would provide necessary certainty for project developers to access project financing at a time when tax liability is limited. The bill would also revise language from the 2017 Tax Cuts and Jobs Act that will encourage future investment in CCUS projects. This legislation would ensure the availability of the credit as intended by Congress and enable full monetization of the tax credits for project finance, and it represents a necessary step to further advance CCUS projects in the United States. CURC applauds Congressmen McKinley and Veasey for their continued leadership.”

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